3. Approve the Minutes of the April 27, 2016 Meeting – ACTION*minutes[4]

4. Adopt a Motion of Support for the Revised Administrative Code, the Revised Rules of Order, and the Revised Debt, Equal Benefits, Fiscal, Investment and Travel, Conference, Training and Business Expense Reimbursement Policies, and Adoption of the Title VI Program – ACTION*memo[5]

While it is Transportation Authority direction to review the Investment Policy and Debt Policy on an annual basis, it is also important to review the administrative code and all policies periodically, to ensure compliance with current statutes and the Transportation Authority’s objectives. Upon the advice of the Transportation Authority’s financial advisors, bond counsel and legal counsel, we are recommending changes to the Administrative Code; Rules of Order; Debt, Equal Benefits, Fiscal, Investment and Travel, Conference, Training and Business Expense Reimbursement Policies, and adoption of the Title VI Program to conform to applicable law and consistent with state and local government codes.

5. Adopt a Motion of Support to Execute Annual Contract Renewals and Options for Various Annual Professional Services in an Amount Not to Exceed $835,000 and to Authorize the Executive Director to Modify Contract Payment Terms and Non-Material Contract Terms and Conditions – ACTION*memo[12]

The Transportation Authority contracts with City and County of San Francisco (City) departments and outside firms for certain specialized professional services in areas where factors like costs, work volume, or the degree of specialization required would not justify the use of in-house staff. As summarized in Attachment 1, we are recommending renewing annual contracts for general legal counsel, video production services for Transportation Authority Board and Committee meetings, and exercising contract options for on-call strategic communications, media and community relations professional services, vehicle level of service and transit speed monitoring consulting services for the Congestion Management Program update for Fiscal Year 2016/17, on-call modeling and technology services, and computer network and maintenance services, in an amount not to exceed $835,000.

6. Adopt a Motion of Support for Programming $360,000 in Supplemental Regional Safe Routes to School (SR2S) Funds to San Francisco Department of Public Health’s SR2S Program, and Reprogramming $52,251 in One Bay Area Grant Funds and $548,388 in Congestion Management Agency Block Grant Funds to San Francisco Public Works’ Second Street Improvement Project – ACTION*memo[13]

The purpose of this memorandum is to seek a motion of support for some programming changes related to two Cycle 1 One Bay Area Grant (OBAG) projects. In June 2013, as Congestion Management Agency (CMA) for San Francisco, the Transportation Authority Board programmed $1.439 million in Regional Safe Routes to School (SR2S) funds to the San Francisco Department of Public Health’s (SFDPH’s) SR2S Program and $35 million in Cycle 1 OBAG block grant funds to seven projects, including San Francisco Public Works’ (SFPW’s) Second Street Improvement Project. Since then, the Metropolitan Transportation Commission extended Cycle 1 OBAG by 1 year and, as a result, generated supplemental funds for the Regional SR2S program. We are proposing to program San Francisco’s modest share ($360,000) of these funds to expand SFDPH’s SR2S Program, particularly the communication, coordination, outreach, and evaluation efforts. The second recommended action is to reprogram unneeded funds from the ER Taylor SR2S ($52,251 in Cycle 1 OBAG) and the Folsom Streetscape Improvement ($548,388 in CMA Block Grant funds, the predecessor to OBAG) projects to SFPW’s Second Street project. The Second Street project has experienced cost increases due to the rising cost of construction since the project was originally funded in 2013, and the community’s request for the inclusion of pedestrian lighting.

Every month, we provide an update on state and federal legislation and, when appropriate, seek recommendations to adopt new positions on active legislation. The attached matrix tracks the latest activity on state bills and the positions previously adopted by the Transportation Authority. At its May 10, 2016 meeting, the Finance Committee recommended the following new positions: oppose on Assembly Bill First Extraordinary Session (ABX1) 24 (Levine) and Senate Bill (SB) 986 (Hill).

End of Consent Calendar

6:10 8. Adopt a Motion of Support for Allocation of $6,004,645 in Prop K Funds, with Conditions, and Appropriation of $75,000 in Prop K Funds, for Eight Requests, Subject to the Attached Fiscal Year Cash Flow Distribution Schedules – ACTION*memo[15]enclosure[16]presentation[17]

As summarized in Attachments 1 and 2, we have eight requests totaling $6,079,645 in Prop K funds to present to the Citizens Advisory Committee. The San Francisco Municipal Transportation Agency (SFMTA) is requesting about $1.03 million for rail grinding of all tracks in the Muni Metro tunnel to extend the useful life of the rails, reduce the risk of derailment, and improve ride quality. The SFMTA has also requested $150,000 for a Neighborhood Transportation Improvement Program (NTIP) planning project to develop conceptual designs for multimodal improvements to the Geneva-San Jose intersection, including passenger access to the M-Ocean View Line. San Francisco Public Works (SFPW) has requested $64,734 for the design phase of the Great Highway Reroute (Permanent Restoration) and $1.5 million to leverage One Bay Area Grant funds for construction of complete street improvements on 2nd Street between Market and Townsend Streets. SFPW has also requested funds for three programs funded annually by Prop K: Public Sidewalk Repair ($537,494), Tree Planting and Maintenance ($1,092,025) and Street Repair and Cleaning Equipment ($1,499,408). The latter request is for replacement of five street sweepers which have exceeded their useful lives and will be out of compliance with California and Bay Area emissions standards after December 31, 2016. As a result, SFPW is requesting a Prop K Strategic Plan amendment to advance funds to meet Bay Area Air Quality Management District requirements. Finally, we are requesting $150,000 jointly with the SFMTA for planning work to support commissioners' efforts to identify potential NTIP planning and capital projects and develop associated scopes, schedules and budgets.

6:25 9. Adopt a Motion of Support for the Adoption of the Proposed Fiscal Year 2016/17 Annual Budget and Work Program – ACTION*memo[18]

Pursuant to State statutes (PUC Code Sections 131000 et seq.) and the Transportation Authority’s Fiscal Policy, the Transportation Authority Board must adopt an annual budget for the following fiscal year by June 30. The proposed Fiscal Year (FY) 2016/17 Annual Budget includes projections of sales tax revenues; federal, state and regional grants; investment income for the fiscal period; and projections of operating and administrative costs, capital expenditures, and associated financing costs. The proposed FY 2016/17 Annual Budget also includes a description of the Transportation Authority’s proposed Work Program for the coming fiscal year. Total revenues are projected to be $125.8 million, including $108.2 million in sales tax revenues. Total expenditures are projected to be $230.2 million. Capital project expenditures are projected to be $219.9 million or about 95.5% of total expenditures. The final proposed FY 2016/17 Annual Budget and Work Program will be presented to the Finance Committee and Transportation Authority Board in June for approval. A public hearing will precede consideration of the FY 2016/17 Annual Budget and Work Program at the Transportation Authority Board’s June meeting.

6:35 10. Adopt a Motion of Support for the Fiscal Year 2016/2017 Transportation Fund for Clean Air Program of Projects – ACTION*memo[19]presentation[20]

The Transportation Fund for Clean Air (TFCA) Program was established to fund the most effective transportation projects that achieve emission reductions from motor vehicles in accordance with the Bay Area Air Quality Management District’s (Air District’s) Clean Air Plan. Funds are generated from a $4 surcharge on the vehicle registration fee collected by the Department of Motor Vehicles. As the San Francisco TFCA County Program Manager, the Transportation Authority annually develops the Program of Projects for the TFCA Program Manager funds. In February we issued the call for Fiscal Year 2016/2017 TFCA applications. We received six project applications by the April 29, 2016 deadline, requesting $1,476,415 in TFCA funds compared to $972,257 in available funds. Two applications were subsequently withdrawn to allow for additional project development. We reviewed the remaining projects for eligibility, then evaluated eligible projects following the Board-adopted local expenditure criteria which include project type (e.g., first priority to zero emission projects), cost effectiveness of emissions reduced, program diversity, project readiness, and other considerations (e.g., a sponsor’s track record for delivering prior TFCA projects). Based on this review, we are recommending full funding for the Gator Pass Implementation Project, Alternative Fuel Taxicab Incentive Program, and Emergency Ride Home. We are recommending partial funding for the Short Term Bike Parking project which is scalable and is least cost effective.

6:50 11. Adopt a Motion of Support to Authorize the Executive Director to Execute, with Conditions, a Seven Party Supplement to the 2012 Memorandum of Understanding that Adopted an Early Investment Strategy Pertaining to the Peninsula Corridor Electrification Project – ACTION*memo[21]presentation[22]

The Caltrain Early Investment Program consists of three components: the Communications Based Overlay Signal System (CBOSS) to provide Positive Train Control; the electrification of the Caltrain line between San Jose and San Francisco; and the purchase of electric-multiple unit (EMU) vehicles to operate on the electrified railroad. It is one of Prop K’s signature projects. In April 2012, the Transportation Authority Board authorized the Executive Director to execute a Memorandum of Understanding (MOU) with the California High-Speed Rail Authority, the Metropolitan Transportation Commission, and six other local and regional entities to establish a funding framework for a High-Speed Rail Early Investment Strategy for a blended system in the Peninsula Corridor. At the time, local contribution from each of the three Peninsula Corridor Joint Powers Board (PCJPB) member counties (San Francisco, San Mateo and Santa Clara) was $60 million. The total Early Investment Program budget, established in 2009 and the basis of the 2012 nine-party MOU, was estimated at $1.456 billion. That budget was based on a 2008 estimate. Subsequently, the initial budget was updated by Caltrain staff to reflect a cost estimate study conducted in 2014 and to account for received bids, resulting in a new projected cost of $1.2.2 billion, an increase of $755 million. The majority of the cost increase is attributable to the cost estimate study and the remainder from bid results. The new estimate includes $316 million in contingency. This cost increase has triggered a need for a supplemental MOU to address the funding gap, which is the subject of this request. The supplemental MOU will increase each PCJPB members’ contribution by $20 million, to a total of $80 million. In San Francisco, the Transportation Authority and the City would jointly cover the increase. We have $3.9 million in Prop K funds remaining in the electrification line item. The source of the remaining funds is to be determined, but could include a potential new sales tax measure under consideration for the November 2016 ballot or City funds. This memo also provides an update on the overall program.

The Transportation Sustainability Program (TSP) is a joint effort between the San Francisco Planning Department, the San Francisco County Transportation Authority, the Office of Economic and Workforce Development, and the San Francisco Municipal Transportation Agency. Two of the three pieces, a Transportation Impact Fee on new development (Invest) and a shift in the metric to determine traffic impacts for environmental review (Align) were legislated earlier this winter. The final piece of the program (Shift) is a transportation demand management (TDM) program for new development. The TDM Program would establish a framework of TDM requirements for new land use development projects, making sure these projects are designed to make it easier for new residents, tenants, employees, and visitors to get around by sustainable modes of travel such as transit, walking, and bicycling. Each measure that would be included in the TDM program is intended to reduce vehicle miles traveled from new development. On April 28, 2016 the Planning Commission unanimously voted to initiate a TDM ordinance to establish the new program. The Planning Commission is scheduled to consider adoption of the ordinance at its July 7, 2016 hearing.

At its May 17 meeting, the San Francisco Board of Supervisors (BOS) passed a resolution (Attachment 1) calling for the Transportation Authority, in partnership with the Mayor’s Office and the San Francisco Municipal Transportation Agency (SFMTA), to lead development of a San Francisco Transportation Expenditure Plan to specify the use of revenues from a potential new half-cent sales tax for transportation for potential consideration for the November 2016 ballot. The Expenditure Plan would build and expand on the recommendations of the San Francisco Transportation Plan and Transportation 2030 Report (which recommended an additional half-cent sales tax as one of a suite of four revenue measures) as well as existing planning and prioritization efforts. To develop the Expenditure Plan, we will be seeking input from city and regional transit agencies serving San Francisco, members of the public, and other key stakeholders over the next eight weeks before the BOS and Mayor would need to act to place the measure on the ballot. Drawing upon the resolution and in close collaboration with the SFMTA, we have developed draft principles (Attachment 2) to guide development of the Expenditure Plan. At the Board meeting, we will provide information on the schedule and process to place a sales tax ordinance on the November 2016 ballot, outline a public engagement strategy, and present the draft principles. We will be seeking input and guidance from the Board, particularly on the public engagement strategy given the tight timeline.

The Metropolitan Transportation Commission (MTC) and the Association of Bay Area Governments (ABAG) are currently developing Plan Bay Area 2040 (PBA 2040), the Bay Area’s Regional Transportation Plan/Sustainable Communities Strategy that adopts a land use vision and a transportation system to govern the region’s growth and investment through 2040. In October 2015, the Transportation Authority adopted goals and objectives for our participation in the PBA 2040 process and approved a list of projects and programs for MTC and ABAG to consider for inclusion in PBA 2040 (see Attachment 1). Since then the agencies have adopted goals and performance measures, ABAG has released draft growth scenarios for review, and MTC has evaluated how the largest of the nominated projects perform in moving the region toward its targets. At the April CAC meeting, we presented the initial results of MTC’s project performance evaluation. At the May CAC meeting, we will provide an update on MTC staff recommendations related to the project performance assessment, our strategy to fit San Francisco project priorities within new local (financially constrained) discretionary funding targets (which include one scenario with a new November 2016 half-cent sales tax measure and one without), and to maximize regional discretionary funds for San Francisco priorities. We will also provide some information about MTC’s staff proposal for a regional housing action agenda which includes near- and medium-term proposals to address the region’s affordable housing and displacement crisis (see presentation in Attachment 2 and MTC memo in Attachment 3).

7:45 15. Introduction of New Business – INFORMATION

During this segment of the meeting, CAC members may make comments on items not specifically listed above, or introduce or request items for future consideration.

7:50 16. Public Comment

8:00 17. Adjournment

* Additional materials

Next Meeting: June 22, 2016

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